UK’s consumer credit increases GBP0.3 billion in August

The Bank of England’s (BoE) monthly Money and Credit statistical release revealed that consumer credit in the UK increased GBP0.3 billion in August, following a revised GBP1.1 billion gain in July (originally GBP1.2 billion). Economists had forecast a GBP1.45 billion advance. In y-o-y terms, consumer credit dropped 3.9 percent, following a 3.7 percent drop in July. This was a new series low since it began in 1994.

Meanwhile, net mortgage borrowing by households stood at GBP3.1 billion in August compared to a revised GBP2.9 billion in July (originally GBP2.7 billion). Economists had forecast GBP3.65 billion. The m-o-m advance reflected slightly higher gross borrowing of GBP18.8 billion, although it is still below the pre-COVID February level of GBP23.7 billion. The report also showed that the number of mortgages approvals for house purchase climbed to 84,700 in August (the highest since October 2007), from 66,300 in July, beating market expectations of 71,000.

Net lending to individuals in the UK was GBP3.4 billion in August compared to GBP3.9 billion in July.